Contract Glossary
Bailment
Definition
When you temporarily hand over your property to someone else for a specific purpose, like dropping off your laptop for repair or storing inventory in a warehouse. The person holding your stuff (the bailee) has a duty to take care of it and return it.
In Practice
You leave your camera equipment with a rental company for maintenance, or you store business inventory in a third-party warehouse. Both create a bailment. The bailee must exercise reasonable care over your property. If they lose or damage it through negligence, they're liable, but many bailment agreements include liability limits, so read the fine print.
Common in these contract types
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